Regal Rexnord Reports Q2 2025 Net Sales of $1,496.1 Million, Net Income Increases to $79.6 Million

Regal Rexnord Corporation reported a net sales figure of $1,496.1 million for the second quarter of 2025, reflecting a decrease of 3.3% compared to $1,547.6 million in the same period of 2024. The decline was attributed to a 2.7% negative impact from divestitures, primarily due to the sale of the industrial motors and generators business, and a 1.2% organic sales decline, partially offset by a 0.6% positive foreign currency translation impact. For the first half of 2025, net sales totaled $2,914.2 million, down 5.9% from $3,095.3 million in the prior year, with similar factors contributing to the decrease.

Gross profit for the second quarter of 2025 was $564.7 million, a slight decline of 1.1% from $571.0 million in the previous year. The decrease was primarily driven by lower sales volumes in the Automation & Motion Control (AMC) segment, which saw a gross profit drop of $14.6 million. Operating expenses increased by 1.4% to $382.4 million, while interest expenses decreased significantly by 16.1% to $85.3 million, reflecting a reduction in outstanding debt. The company reported a net income of $79.6 million for the quarter, up from $63.0 million a year earlier.

Strategically, Regal Rexnord has been active in restructuring its operations, including the divestiture of its industrial motors and generators business, which closed on April 30, 2024. This move is part of a broader strategy to streamline operations and focus on core segments. The company has also been investing in product development, particularly in the Automation & Motion Control and Power Efficiency Solutions segments, which have shown growth in specific markets such as aerospace and HVAC.

Operationally, Regal Rexnord's employee headcount remained stable, with a slight decrease to 66.3 million shares outstanding as of June 30, 2025. The company continues to focus on enhancing its market share and product adoption rates, particularly in the residential and commercial HVAC markets, where it has seen a 6.0% increase in sales for the first half of 2025. The company is also leveraging its global presence, with significant sales contributions from North America, Europe, and Asia.

Looking ahead, Regal Rexnord has updated its annual guidance for GAAP diluted earnings per share to a range of $4.50 to $5.10. The company anticipates that its strategic initiatives, including cost mitigation actions and operational efficiencies, will help neutralize the impact of current market challenges, including tariffs. The company remains committed to enhancing its product offerings and expanding its market reach while managing its debt levels effectively.